As we move closer towards the fourth revolution, blockchain smart contracts become increasingly important to automate processes and solve trust deficit issues. Therefore, when a platform comes along and builds an ecosystem around it, we cannot help but take note of it. Ontology is one such platform and its cryptocurrency, of the same name, is a crucial part of it. In this beginner’s guide to Ontology Cryptocurrency, we will have a quick look at what it is, how it works and more.
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What is Ontology Cryptocurrency?
Ontology is essentially a platform based in blockchain technology built around smart contracts to make identity verification convenient. The primary objectives of the developers in designing Ontology was to eliminate or at least bring down counter party risks, enhance the security features and apply the many advantages of distributed ledgers in the management of identity data.
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The ONT coin is the native cryptocurrency of this platform and works as an NEP-5 token hosted and run on the NEO Blockchain. Unlike many blockchain networks that are usually set up on the Ethereum network, the developers of Ontology chose the NEO platform, dubbed the “Chinese Ethereum” to run their network.
The ONT Coin has mostly been in its community distribution phases over the course of 2018. Its price had seen a sharp rise in the earlier part of the year but the recent gloom in the crypto market has preyed upon its price point, causing a drastic decline.
How Does The Ontology Cryptocurrency Work?
The Ontology platform, underlying the cryptocurrency, saw its mainnet launch as Ontology 1.0 in the first half of July this year. While the platform works with two very interesting layers called The Chain Network and Trust Ecosystem respectively, here we focus on the coin’s working. Before we move to explaining the unique consensus algorithm ONT is using, we must mention its Smart Contracts tool SmartX which allows users to access a wide range of smart contract features at one place.
Coming to how the coin itself works, it is essential to briefly look at how the consensus protocol works in terms of mining. Ontology has put together a consensus protocol of its own, combining elements from the different consensus protocols used in blockchain.
It is called the VBFT or Verifiable Byzantine Fault Tolerance System. It borrows elements from Proof-of-Stake (PoS), Byzantine Fault Tolerance (BFT) as well as the Verifiable Random Function (VRF). This algorithm was designed to boost performance efficiency of the network and make sure the coins can be mined easily and quickly. In addition to ONT, it must be noted, the platform also hosts the ONG tokens, that essentially serve as divisible “gas” tokens on the network.
Should You Choose The Ontology Cryptocurrency?
Although doubts remain about how far its Chinese background will help its case when it comes to regulatory control, the fact that the Ontology cryptocurrency is part of a very promising project can hardly be denied. With backing from NEO and reputed Chinese venture capitalists, as well as extensive use cases in China and neighbouring areas, Ontology does seem to encourage a great deal of enthusiasm. Its current price levels may make it unsuitable for speculation but in the crypto market, few know when the tides may turn! Besides, having ONT allows access to the myriad merits of the Ontology platform, which is a bonus we can’t ignore. Top cryptocurrency exchanges such as Binance trade in ONT.
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